EMBRAER EARNINGS RESULTS 4th QUARTER AND FISCAL YEAR 2024

Rhea-AI Summary

Embraer (NYSE: ERJ) reported strong financial results for Q4 and FY2024, with record-breaking annual revenues of $6.395 billion, up 21% year-over-year. The company delivered 206 aircraft in 2024, a 14% increase from 2023, meeting guidance targets for both Commercial and Executive Aviation.

Q4 revenues reached $2.311 billion, with adjusted EBIT of $265.1 million and an 11.5% margin. The Defense & Security segment showed remarkable growth of 40% YoY. The firm order backlog reached a historic high of $26.3 billion, representing a 40% YoY increase.

For 2025, Embraer projects Commercial Aviation deliveries of 77-85 aircraft and Executive Aviation deliveries of 145-155 aircraft. Revenue guidance is set at $7.0-7.5 billion, with adjusted EBIT margin of 7.5-8.3% and adjusted free cash flow of $200 million or higher.

Positive

• Record annual revenue of $6.395B (+21% YoY)
• Historic high backlog of $26.3B (+40% YoY)
• Defense & Security revenue growth of 40% YoY
• Strong adjusted EBIT margin of 11.1% in 2024
• Achieved Investment Grade status from all 3 major rating agencies
• Net debt-to-EBITDA ratio improved to 0.1x from 1.4x

Negative

• Projected lower EBIT margin for 2025 (7.5-8.3% vs 11.1% in 2024)
• Expected lower free cash flow in 2025 ($200M+ vs $675.6M in 2024)

Insights

Financial Analyst

Embraer has delivered exceptional performance in 2024, with record-breaking $6.4 billion revenue (+21% YoY) and significantly improved profitability with adjusted EBIT of $708.2 million (11.1% margin), exceeding guidance. The Defense & Security segment emerged as a standout performer with 40% YoY growth, indicating successful diversification beyond commercial aviation.

The company's financial health has transformed dramatically, achieving a near-zero net debt position (0.1x net debt-to-EBITDA, down from 1.4x) and securing investment grade status from all three major rating agencies. This rating upgrade will reduce borrowing costs and enhance financial flexibility for future investments.

The record $26.3 billion backlog (+40% YoY) provides exceptional revenue visibility, representing approximately 4 years of production at current rates. The increasing proportion of E2 jets in commercial deliveries (47 E2s vs 26 E1s) signals a positive transition to higher-margin next-generation aircraft.

Cash generation has been particularly impressive, with $675.6 million in adjusted free cash flow for 2024, bolstered by stronger aircraft deliveries, advance deposits, and a favorable Boeing arbitration outcome. This cash generation transforms Embraer's strategic options for shareholder returns or growth investments.

The 2025 guidance suggests continued growth but with slightly more conservative margins (7.5-8.3% vs 11.1% achieved in 2024), potentially indicating management's caution about supply chain constraints or inflationary pressures. The projected delivery increase in both commercial (77-85 vs 73) and executive segments (145-155 vs 130) demonstrates confidence in production capacity and market demand despite macroeconomic uncertainties.

Aerospace Industry Expert

Embraer's 2024 results reveal an aerospace manufacturer firing on all cylinders, outpacing the broader industry recovery. The 14% increase in deliveries to 206 aircraft demonstrates strong execution amid persistent supply chain challenges that continue to hamper competitors. Most telling is the accelerating transition to next-generation aircraft, with E2 jets now comprising 64% of commercial deliveries, up from approximately 50% in 2023, driving better fuel efficiency for operators and higher margins for Embraer.

The record $26.3 billion backlog represents a transformative shift in Embraer's market position. This exceptional 40% YoY growth significantly outpaces industry averages and provides unprecedented production visibility. The backlog-to-annual-revenue ratio now exceeds 4:1, among the strongest in the aerospace sector, creating a substantial buffer against potential economic headwinds.

The defense segment's progress with three C-390 Millennium deliveries marks a critical inflection point for this program, which is gaining international traction as a cost-effective alternative to Lockheed Martin's C-130. Recent orders from NATO countries validate this platform's global potential beyond traditional Brazilian markets.

Embraer's 2025 guidance suggests continued momentum but with calculated conservatism. The projected 5-16% growth in commercial deliveries aligns with the company's production capacity expansion while acknowledging ongoing supply chain constraints, particularly in engines and avionics. The executive jet delivery guidance of 145-155 aircraft capitalizes on the continuing strength in business aviation demand, where Embraer has successfully positioned its Phenom and Praetor families against Textron and Bombardier offerings.

The achievement of investment grade status from all three major rating agencies represents a competitive advantage, potentially reducing financing costs by 75-100 basis points for both Embraer and its customers, enhancing the company's position against larger competitors who benefit from scale economies.

SÃO PAULO, Feb. 27, 2025 /PRNewswire/ -- EMBRAER S.A. (NYSE: ERJ; B3: EMBR3) RELEASES ITS FOURTH QUARTER AND FISCAL YEAR 2024 EARNINGS RESULTS.

HIGHLIGHTS

• Guidance for 2025: Commercial Aviation deliveries between 77 and 85 aircraft, and Executive Aviation deliveries between 145 and 155 aircraft. Total company revenues in the US$7.0 to US$7.5 billion range, adjusted EBIT margin between 7.5% and 8.3%, and adjusted free cash flow of US$200 million or higher for the year.
• Revenues totaled US$2,311 million in 4Q24 and US$6,395 million in 2024 highest level ever, +21% yoy and at the high end of guidance. Highlight for Defense & Security revenues +40% yoy growth.
• Adjusted EBIT reached US$265.1 million with an 11.5% margin in 4Q24. In 2024, the company reported adjusted EBIT of US$708.2 million and 11.1% margin (US$558.2 million and 8.7% ex-Boeing) above guidance.
• Adjusted free cash flow w/o Eve was US$995.5 million during the quarter and US$675.6 million in 2024, supported by higher number of aircraft delivered, strong performance in sales (pre downpayments – PDP's) and Boeing arbitration. Consequently, the company finished 2024 with an US$110.7 million net debt position (w/o Eve).
• Embraer ended 2024 with a 0.1x net debt-to-Ebitda ratio, down from 1.4x in 2023. Moody's upgraded Embraer's credit rating from "Ba1" to "Baa3" with a stable outlook in December. Consequently, all three main U.S. rating agencies classify the company Investment Grade (IG).
• Embraer delivered 75 jets in 4Q24, of which 31 were commercial jets (20 E2s and 11 E1s) and 44 were executive jets (22 light and 22 medium). In 2024, the company delivered a total of 206 aircraft, of which 73 were commercial jets (47 E2s and 26 E1s), 130 were executive jets (75 light and 55 medium) and 3 multi-mission C-390 Millennium in Defense & Security; +14% versus the 181 aircraft delivered year over year (yoy). Deliveries were in line with guidance for both Commercial and Executive Aviation.
• Firm order backlog of US$26.3 billion in 4Q24 – the largest ever recorded by the company in its history, more than 40% higher yoy and 16% higher quarter over quarter (qoq). For more information please see 4Q24 Backlog and Deliveries release.

For additional information, please check the full document on our website ri.embraer.com.br

INVESTOR RELATIONS
Guilherme Paiva, Patrícia Mc Knight, Viviane Pinheiro, Eliane Fanis, Marilia Saback and Marcelo Cuperman.  
(+55 12)3927-6017
investor.relations@embraer.com.br
ri.embraer.com.br

CONFERENCE CALL INFORMATION
Embraer will host a conference call to present its 4Q24 and FY2024 results on:

Thursday Feb 27, 2025
ENGLISH: 7:00 AM (NY Time) / 9:00 AM (SP Time).
Translation to Portuguese.

To access the webcast click here.

Zoom webinar: 838 5827 6373

Or alternatively to participate by phone call:
U.S.: +1(929)205-6099, +1(253)205-0468
Brazil: +55(11)4632-2237, +55(11)4680-6788

We recommend you join 15 minutes in advance. 

 

View original content:https://www.prnewswire.com/news-releases/embraer-earnings-results-4th-quarter-and-fiscal-year-2024-302387668.html

SOURCE Embraer S.A.

FAQ

What were Embraer's (ERJ) total aircraft deliveries in 2024?

Embraer delivered 206 aircraft in 2024: 73 commercial jets (47 E2s, 26 E1s), 130 executive jets (75 light, 55 medium), and 3 C-390 Millennium military aircraft.

What is Embraer's (ERJ) revenue guidance for 2025?

Embraer projects total company revenues between $7.0 to $7.5 billion for 2025.

How much did Embraer's (ERJ) order backlog grow in Q4 2024?

Embraer's order backlog reached $26.3 billion in Q4 2024, up 40% year-over-year and 16% quarter-over-quarter, marking the largest backlog in company history.

What was Embraer's (ERJ) free cash flow performance in 2024?

Adjusted free cash flow excluding Eve was $675.6 million in 2024, with Q4 contributing $995.5 million.

How did Embraer's (ERJ) credit rating change in 2024?

Moody's upgraded Embraer to 'Baa3' investment grade rating with stable outlook, joining the other two main U.S. rating agencies in classifying ERJ as Investment Grade.